Question

Allen Company used $71,000 of direct materlals and Incurred $37,000 of direct labor costs during the current year. Indirect labor amounted to $2,700, while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance. Prepare a statement of cost of goods manufactured Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31 Factory overhead Total manufacturing costs incurred Total manufacturing costs Cost of goods manufactured

Answer 1

Solution:
Allen Company
Cost of Goods Manufactured schedule
For the year ended Dec 31.
	Amount ($)		Amount ($)
Work in process opening balance			5,500
Direct Materials		71,000
Direct Labor		37,000
Factory overhead
Utilities	3,100
Indirect labor	2,700
Indirect material	1,600
Maintenance	4,500
Supplies	1,800
Depreciation	7,900
Propeerty taxes	2,600	24,200
Total Manufacturing cost incurred			1,32,200
Total Manufacturing cost			1,37,700
Less: Closing WIP			-7,500
Cost of Goods Manufactured			1,30,200